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176283212
April 29, 2025
Question

How to stop state tax reporting for inactive states.

  • April 29, 2025
  • 1 reply
  • 0 views

My issue is for employees that work in one state but live in another state.  The company/employer is located in Maryland.  MD and the neighboring states (DC, PA, VA, WV) have reciprocity. That means that an employee working in MD but living in a neighboring state does not owe MD taxes.  The Company may withhold taxes to the employee's state and remit the taxes to that state.  QBO is scheduling withholding reports to the other states even though the company no longer has employees in one or more of those states.

 

How do I deactivate the other states so QBO no longer schedules the filing notifications?

1 reply

S
SashaMC
April 29, 2025

Hello 1762832,

 

Welcome to the QuickBooks Community! I will be happy to help you. To make changes for that employee, you would need to edit their profile in QuickBooks Online. Here's how:

 

 

  1. Go to the Payroll menu.
  2. Select the Employees tab.
  3. Click the name of the employee.
  4. Select Edit, under the Tax withholding section.
  5. Make the necessary changes.
  6. When you're done, press Save.

 

Drop your reply below if you have any other questions about state tax. I'll always be right here to help.

1
176283212Author
April 30, 2025

To say your response was incomplete is to be nice.

 

In #5, you state to "make the necessary changes".  What changes should I make?  The employees that lived in other states no longer works for the company. Why does that employer have to make changes to a terminated employee's record?

 

I want QBO to stop notifying the employer it has to file withholding reports to the other states since the company no longer has the filing requirements (no employees from that state).

Candice C
Candice C
April 30, 2025

Good morning, @176283212. 

 

Thanks for chiming back in on your thread. 

 

We understand how frustrating and time consuming this must be. However, let's try to make certain work locations inactive to resolve this problem: 

 

  1. Go to the Gear icon.
  2. Click Payroll Settings.
  3. Under Company and Account, click Work Locations.
  4. Select Work Locations.
  5. Mark the Inactive checkbox.
  6. Tap Save.

 

If the steps above don't work within your account, we recommend getting in touch with our Customer Support Team so they can review your account with you.

 

Feel free to reach back out if you have any other questions or concerns. We're only a post away! 

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